Industry recession: Profits and revenue at large U.S. companies are expected to fall as some industrial firms say they might slow their spending. The Wall Street Journal reports railroads, manufacturers and energy producers say they face a long downturn in production, sales and employment. That downturn could creep into next year. “The industrial environment’s in a recession. I don’t care what anybody says,” Daniel Florness, chief financial officer of Fastenal Co., told investors and analysts earlier this month. The Wall Street Journal has the full story (subscription may be required).
Halliburton confidence: Halliburton officials remain confident that the $35 billion takeover of Baker Hughes will pass scrutiny by Australian antitrust regulators. FuelFix.com reports that the Australian Competition and Consumer Commission in a report released Friday alleges the proposed deal raises questions about competition around the world because Halliburton and Baker Hughes are such close competitors. The deal would fuse together two of the world’s three largest global oilfield services providers, which may “create conditions that would facilitate coordinated behaviour in the market,” Chairman Rod Sims says in a statement. Despite the delay, the Houston-based oilfield services giant said it continues to target closing the deal by the end of the year, but said it could push it back to next year, if necessary. FuelFix.com has the full story.
New direction: North Carolina-based Duke Energy Corp. has agreed to a deal to buy Piedmont Natural Gas Co. in a $4.9 billion cash deal. Bloomberg News reports Duke is the latest electric utility owner to purchase a natural gas distributor in the past 12 months, following Southern Co., Emera Inc. and Black Hills Corp. “Utilities are going through a period where organic growth is slowing down, so they have to grow through acquisitions. Everybody wants to be in the gas infrastructure business.” Bloomberg has the full story.
